Market Situation: Cotton Yarn Market Follows The Cost Shock

The cotton yarn market follows the cost shock. The current "golden nine and silver ten" peak season is not good enough. The new orders of downstream textile enterprises are less than expected, and the overall level is lower than that of the same period in previous years. Most of them keep small orders, and it is difficult to increase the price of cotton yarn. When the spinning profit of the mainland textile enterprises is lost, the quotations are mostly stable, and there is still room for actual negotiation. At the same time, with the sharp rise of domestic cotton prices, the cost of cotton used by textile enterprises has increased, and the ability and willingness to accept high priced cotton are not strong. Chemical fiber products have obvious price advantages, becoming alternatives for textile enterprises, which puts pressure on domestic cotton prices. Some textile mills have reduced production, and the market confidence is insufficient. From the perspective of orders, most of them are small orders, and the number of orders is lower than that at the beginning of the month, and follow-up orders are generally insufficient.